Johnson & Johnson offers $8.9 bn to settle 'talc caused cancer' lawsuits
New York, April 5: On Wednesday, Johnson & Johnson offered to pay $8.9 billion to settle thousands of lawsuits alleging that its talc-based baby powder caused cancer. The offer is a major step towards resolving the legal battle that has been ongoing for the past several years.
Johnson & Johnson said that it is subsidiary LTL Management LLC (LTL) has re-filed for bankruptcy protection to obtain approval of a reorganisation plan that it said will "equitably and efficiently resolve all claims arising from cosmetic talc litigation" against the company and its affiliates. The company agreed to contribute up to $8.9 billion which is payable for over 25 years to resolve the current claims.
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The lawsuits allege that Johnson & Johnson’s baby powder contained asbestos, a known carcinogen, and that its use led to thousands of cases of ovarian cancer and mesothelioma. The company has denied these claims and continued to defend the safety of its products. However, the offer to settle the lawsuits comes after a string of jury awards totaling more than $4.7 billion, including $4.14 billion to 22 women and their families.
Earlier, it was proposed $6.9 bn over the $2 bn previously committed in connection with its subsidiary LTL's initial bankruptcy protection filing in the year October 2021. "LTL also has secured commitments from over 60,000 current claimants to support a global resolution on these terms," the statement said.
Johnson & Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual, it said.
"The Company continues to believe that these claims are specious and lack scientific merit," said Erik Haas, Worldwide Vice President of Litigation, Johnson & Johnson.
"However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation. Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity," Haas added.
- ANI
